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Sendmail- Need help setting up

I have sendmail installed. I only need it to send emails outbound. I only have access to the machine via SSH and through Webmin. Inside webmin I see that the emails are not being sent. Dont know why not...

- I have the domain and the servers name inside the outgoing domains.
- Send outgoing mail via host is set to Deliver Directly
-Network ports set to Accept email on port 25 and all addresses
- For local Domains I have listed: localhost
localhost.localdomain

I'm not sure what I am missing / Overlooked... I have tried emailing myself and it wont send an email to me. Several emails are getting returned Mail Delivery Subsystem

The original message was received at Thu, 15 Sep 2011 13:36:34 -0700
from apache(at)localhost

----- The following addresses had permanent fatal errors -----
(Fill in the blank email address)

----- Transcript of session follows -----
451 pldi.net: Name server timeout
Message could not be delivered for 5 days
Message will be deleted from queue

You need a real domain (or a FQDN at least), not localhost.
You can try localhost.localdomain, but you really need a mydomain.com with DNS, otherwise the receiving server will most likely reject the mail anyway.